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PM covers a broad spectrum of issues relevant to all sections of Australia's geographically and culturally diverse community. It looks behind political, economic, industrial, business, social, cultural, rural, regional and arts stories. Below is the program summary with links to transcripts and audio (if available).

ALP grills Govt over projected budget cuts

Having won its battle to have Question Time in the National Parliament today, the Federal Labor Party has used it to demand answers from the Government about some of the cuts to be revealed in tonight's budget. But to all the questions the Government had but one answer, that all will be revealed when the Treasurer Peter Costello gets to his feet at 7.30 tonight to deliver his seventh budget.

PBS cost blowout needs attention

While welfare groups are warning of the impact of prescription price increases on the country's most vulnerable, there are concerns that behind the budget cut lies an even more worrying problem, a very sick Pharmaceutical Benefits Scheme (PBS). Lloyd Sansom is the head of the Pharmaceutical Benefits Advisory Committee, the expert group which advises the Government on which drugs to include on the PBS. He says the cost blowout is a concern and should be examined.

Politicians battle over anti-terrorism bills

In the shadow of the budget, a struggle is being played out in Canberra over the Government’s controversial and troubled anti-terrorism legislation. There was a high level meeting in Canberra this morning between the Government and the Opposition to begin negotiating the passage of the legislation through the Senate. But not only will a deal take some time to work out, the Federal Attorney-General, Daryl Williams, continues to wrangle with his own party about the bill.

PBL credit rating downgraded

Australia's richest family, the Packers, has had a warning shot fired across its bows today by ratings agency Standard and Poors. The credit rating agency has downgraded the outlook for the Packer's company PBL, because of concerns that the group's television station, Channel Nine, is struggling to maintain its performance. Standard and Poors warns it will take 12 to 18 months for the Nine network to recover. That is if it recovers at all.

Call for overhaul of compensation laws

A decision in the New South Wales Supreme Court yesterday to award close to $4 million to a man paralysed as the result of a swimming accident has spread fear and panic amongst councils and the surf life saving movement. But amidst calls today for an overhaul of the compensation laws, what does this case really tell us?

Financial advisers face insurance premium hike

First it was builders, then community organisations and then doctors having trouble paying bigger insurance bills. Now financial advisers are worried about the impact of growing premiums in their industry. They are warning smaller operators will go out of business, leading to less competition and at the end of the day higher fees for consumers.

Malcolm Turnbull fronts HIH Royal Commission

Today at the Royal Commission into the HIH collapse, the Liberal Party's Federal Treasurer Malcolm Turnbull revealed that he was aware that a non-executive director of FAI Insurance bought shares in the company just days before its takeover by HIH. Malcolm Turnbull, in his role then as the managing director of the investment bank Goldman Sachs, acted as an adviser to FAI Insurance during 1998 but today he's denied the suggestion made at the Commission that he gave that advice under a shroud of secrecy.

Abbott and Vic Government clash over MCG funding

The Melbourne Cricket Ground is the unlikely location for an ideological clash between the Federal Minister for Workplace Relations and the Victorian Government. The Federal Minister, Tony Abbott, is refusing to release $90 million in funding for the MCG's redevelopment, unless Victoria agrees to apply a national building industry code of practice to the project. Mr Abbott says he is determined the law of the land, and not the jungle, should rule on Victorian work sites. But the Victorian Government says the Commonwealth is putting at risk the centrepiece of Melbourne's 2006 Commonwealth Games.

Child rapist jailed for 12 years

The sentencing today of a man convicted of raping a two-year-old girl has led to calls for adults to take more responsibility for their children. A man was sentenced today to 12 years jail for raping the girl at the Swan Valley community east of Perth, which has been under recent scrutiny during a Coronial inquest and a government inquiry. The sentencing comes during a period of debate over child abuse and the influence of solvent and alcohol abuse.

Sierra Leone goes to the polls

Voting has begun in historic elections in Sierra Leone. After more than a decade of civil war, millions of voters are going to the polls. The elections are the first since the end of the conflict. But there are fears of further unrest as rival groups compete for power.

Finance report

Entertainment world remembers Ruth Cracknell

She has been described as the greatest comedian of her time and a performer who brought integrity to the fickle world of acting. But tonight Australians, particularly her fellow actors, are mourning 76-year-old Ruth Cracknell, who died last night from complications resulting from pneumonia. A giant of stage and screen, Ms Cracknell's career spanned nearly six decades during which she played almost every character possible from the classics to comedy. And this afternoon at her old stomping ground, Sydney's Wharf Theatre, her friends and fellow actors gathered to remember her.

Costello delivers Budget 2002

Defence & security big budget winners

So the leaks of the past couple of weeks have been broadly correct. This is a khaki budget, with big spending on defence and border protection, central themes of last year's election and widely and comprehensively flagged as the big-ticket items that Mr Costello would have to pay for. The cost of all that, more than $800 million in a year. The Government also had other election promises to honour, and it has done so with the baby bonus, superannuation co-payments for low-income earners and more funding for the elderly. But there is nothing in the kitty to pay for it, and the sick and disabled, also as widely flagged, will be the losers this time around.

Costello discusses budget

With its long days and dry arguments, Treasury is a portfolio that talented ministers always want to escape, eventually. Will this be Peter Costello's last budget or his second last? Whichever, it is unlikely to be one of the really popular ones. There is plenty of khaki, but not much in the average hip pocket and it has taken him out of his beloved surplus for the first time, although he is reluctant to say so out loud.

Economic consequences of the budget

Budget papers are manna from heaven for economists - they spend days reading the great tomes that most journalists flick through in search of the headline. And often it is the detail that the economists find in the graphs and charts at the back that contain the real story. What will be the economic consequences of this budget?

Labor's criticisms

The Labor Party has learned a very clear lesson at the ballot box on just how popular border security is with the Australian public but tonight the ALP is saying ramping up security spending should not be paid for by the disabled or through prescription costs.

Budget projections

Business sector reacts to budget

By and large this has not been a budget tailored to shoring up business confidence. Then again, recent surveys of investment plans suggests corporate managers are feeling pretty bullish about the medium term for the economy as it is. The lead up to the budget saw some grumblings about a supposed lack of a third term reform agenda for the Coalition, with suggestions that tonight would see an opportunity wasted, however, business is pleased with next year's surplus and future growth prospects.

Budget criticised for targeting pensioners

It has been a nervous time for Australian pensioners as pre-budget leaks pointed to increased prescription costs and tightened rules for drug dispensing. But Mr Costello says he is looking over the horizon with this budget, addressing long-term demographic trends in Australia and the question of how to look after the baby boomers in retirement.

Budget impact on welfare sector

Among the Treasurer's most controversial steps is the bid for welfare savings by moving big numbers of disabled pension recipients onto unemployment benefits. The Government argues that the largest number they are targeting are men with bad backs and if they can work 15 hours a week they should be encouraged to re-enter the workforce. However, welfare lobby groups warn the consequences could be disastrous for many vulnerable people.

How much security are we buying?

As anticipated the Government is allocating an extra half a billion dollars for the Defence Force this year, but how much security are we buying? Derek Woolner is a visiting fellow at the Australian Defence Force Academy and spent 30 years at the Parliamentary Library researching legislation and advising on the Defence budget.

Budget highlights

The main points of Peter Costello's seventh budget are: The books have gone into the red for this financial year. There is a $1.2 billion cash deficit. As expected, the Government has made savings in health. It will charge pensioners an extra dollar per prescriptions, others will pay an extra $6.20 each time they need a prescription filed. People who need disability pensions will face conditions twice as tough before they are eligible. On the spending side, it is a khaki budget. There is a total of $1 billion for Defence, the federal police and domestic security agencies and the Government plans to spend $1 billion more on border protection.